IFAC Response to AICPA Discussion Paper, Enhancing Audit Quality: Plans and Perspectives for the US CPA Profession

In its response to the AICPA’s Discussion Paper, Enhancing Audit Quality: Plans and Perspectives for the US CPA Profession, IFAC recognizes the importance of audit quality and global efforts to enhance audit quality by, among other things, contributing to the development, adoption, and implementation of high-quality, internationally accepted auditing and quality control standards and guidance. It notes that a critical way for audit quality to be promoted and enhanced is through robust, effective, and efficient quality assurance and review, and formal independent inspection arrangements, as appropriate. IFAC believes that professional accountancy organizations (PAOs) play an important role in the regulation of the profession. With this in mind, PAOs’ practice and peer review programs are a crucial part of any such regulation.

IFAC applauds the AICPA’s effort to seek to improve audit quality and further strengthen its practice review arrangements to make them more robust and efficient. It is important for the profession to continually assess and consider the future of the profession and the services it provides. The AICPA’s proposed “Practice Monitoring of the Future,” is a good example of an innovation that could enhance the relevance and role of the profession.